Paper 1 global

tragedy of the commons

• Where: Kazakhstan & Uzbekistan
  
  

• When: 1960s onward
  
  

• What: The Soviet Union diverted the Amu Darya and Syr Darya rivers to irrigate cotton fields
  
  

• How much: The Aral Sea lost approximately 90% of its volume
  
  

• Result: Collapse of the fishing industry, leading to mass unemployment and regional poverty; toxic dust storms from the exposed seabed increased respiratory illnesses
  
  

montreal protocol

• Where: Global
  
  

• When: Signed in 1987; ongoing implementation
  
  

• What: International agreement to phase out ozone-depleting substances like CFCs and halons
  
  

• How much: Phased out nearly 99% of banned ozone-depleting substances
  
  

Result: Ozone layer is on track to recover to 1980 levels by 2040 globally; prevented an estimated 0.5°C of global warming; avoided approximately US$1.8 trillion in health costs and US$460 billion in agricultural damages

carbon tax

• Where: Sweden
  
  

• When: Introduced in 1991
  
  

• What: Implemented a carbon tax starting at SEK 250 per ton of CO₂, increasing to SEK 1,190 by 2019
  
  

• How much: Greenhouse gas emissions decreased by 27% from 1990 to 2018
  
  

Result: Significant reduction in emissions, particularly from heating and industrial sectors, without hindering economic growth 

Renewable Energy Subsidy

• Where: Germany
  
  

• When: Enacted in 2000
  
  

• What: Introduced feed-in tariffs guaranteeing premium prices for renewable energy producers for 20 years
  
  

• How much: Renewable electricity increased from 6% in 2000 to 45% by 2020
  
  

Result: Germany became a global leader in wind and solar energy; significant reductions in CO₂ emissions in the energy sector 

Kyoto Protocol & U.S. Rejection (1997)

• Where: Global; U.S.
  
  

• When: Adopted in 1997; U.S. rejected ratification in 2001
  
  

• What: International treaty committing industrialized countries to reduce greenhouse gas emissions
  
  

• How much: U.S. emissions continued to rise post-rejection
  
  

Result: Undermined global cooperation efforts; limited effectiveness in curbing global emissions

Paris Agreement & UNFCCC Monitoring

• Where: Global
  
  

• When: Adopted in 2015
  
  

• What: Countries submit Nationally Determined Contributions (NDCs) to limit global warming to well below 2°C
  
  

• How much: Current policies project a 3.1°C increase by 2100
  
  

Result: Mixed progress; while some countries have made significant strides, overall global efforts are insufficient to meet target

Wealth Tax: Argentina

• Where: Argentina
  
  

• When: Implemented in 2021
  
  

• What: Imposed a one-time wealth tax of up to 1.75% on assets over ARS 3 million
  
  

• How much: Gini coefficient decreased by 0.71%
  
  

Result: Aimed to fund pandemic recovery and reduce inequality; concerns over potential capital flight and reduced private investment

Luxury Tax: U.S.

• Where: United States
  
  

• When: Enacted in 1991; repealed for most goods by 1993
  
  

• What: Imposed a 10% tax on luxury items like yachts, jewelry, and expensive cars
  
  

• How much: Gini coefficient decreased by 0.78%
  
  

• Result: Led to decreased sales and job losses in affected industries; short-lived policy
  
  

Equity in Education: Australia’s HELP Schem

• Where: Australia
  
  

• When: Introduced in 2003
  
  

• What: Provided income-contingent student loans, with repayments starting only when income exceeds a certain threshold
  
  

• How much: Increased university enrollment among low-income groups
  
  

Result: Improved access to higher education; concerns about long-term debt affecting wealth accumulation

Transfer Payments

• Where: Brazil
  
  

• When: Established in 2003
  
  

• What: Conditional cash transfers to low-income families, requiring school attendance and health checkups
  
  

• How much: Reached 14 million families by 2020; lifted 25 million people out of extreme poverty
  
  

Result: Reduced poverty and inequality; improved education and health outcomes; 64% of beneficiaries’ children no longer require assistance 

GDP vs GDP per capita

• Where: India and Luxembourg
  
  

• When: 2022
  
  

• What: Comparison of total GDP and GDP per capita
  
  

• How much: India’s GDP: $3.73 trillion; per capita: ~$2,600; Luxembourg’s GDP: $88 billion; per capita: ~$136,000
  
  

• Result: Highlights the importance of GDP per capita in assessing individual prosperity
  
  

Informal economy

• Where: India and United States
  
  

• When: 2022
  
  

• What: Proportion of the informal sector in the economy
  
  

• How much: India: ~50% of GDP; USA: ~8–10%
  
  

Result: GDP may underrepresent actual economic activity in countries with large informal sectors like India